The naira on Thursday exchanged at N450 to dollar at the parallel market as build up on dollar demand continued to rise.
The naira is seen weakening on the black market as dollar demand rises from foreign investors and importers with payment obligations accumulated amid hard currency shortages triggered by an oil price crash, traders said.
Aside devaluing the naira in March, the Central Bank of Nigeria (CBN) also adopted a unified exchange rate, and pushed the official rate of the naira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378.
The CBN also moved the official rate to N360 to the dollar from N307 per dollar previously and now selling dollar to foreign portfolio investors (FPI) at N380 at the Investors’ & Exporters FOREX window from N366 per dollar previously.
But the move has failed to strengthen the local currency which many experts fear could face a second round of devaluation.
Meanwhile, the naira is seen steady on the official and over-the-counter spot markets, traders say, as bidders resist weakening the currency since the majority of dollar supply is from the CBN.
The bank resumed forex sales last week to help importers and individuals with dollar expenses abroad ramp up economic activity following a phased easing of the coronavirus lockdown.